Diluted earnings per share increased 29.1% to $0.98 from $0.76 in the
prior year;

The Company recorded a pre-tax charge of $5.5 million ($3.4 million
after-tax) related to a legal settlement which had a $0.05 impact on
diluted earnings per share and a 6.3% impact on diluted earnings per
share growth;

The Company repurchased 114,700 shares of its common stock for $4.1
million.

Kent Taylor, Chief Executive Officer of Texas Roadhouse, Inc.,
commented, "Our operators continued to deliver strong operational and
financial results with solid comparable restaurant sales growth and an
increase in restaurant margin. Positive guest counts primarily drove the
increase in comparable restaurant sales, marking our 26th
consecutive quarter of growth, while lower commodity costs continued to
pave the way for margin expansion. On the development front, we are on
track to open approximately 30 company restaurants this year and we
continue to fill our new restaurant pipeline for next year and beyond."

2016 Outlook

The Company reported that comparable restaurant sales at company
restaurants for the first four weeks of its third quarter of fiscal 2016
increased approximately 3.7% compared to the prior year period.

Approximately 30 company restaurant openings, including approximately
seven Bubba's 33 restaurants;

An income tax rate of approximately 30.0%; and,

Total capital expenditures of $165.0 million to $175.0 million.

Conference Call

The Company is hosting a conference call today, August 1, 2016 at 5:00
p.m. Eastern Time to discuss these results. The dial-in number is (888)
334-3004 or (719) 325-2410 for international calls. A replay of the call
will be available for one week following the conference call. To access
the replay, please dial (877) 870-5176 or (858) 384-5517 for
international calls, and use 8691041 as the pass code. There will be a
simultaneous Web cast conducted at www.texasroadhouse.com.

About the Company

Texas Roadhouse is a casual dining concept that first opened in 1993 and
today operates over 500 restaurants system-wide in 49 states and five
foreign countries. For more information, please visit the Company's Web
site at www.texasroadhouse.com.

Forward-looking Statements

Certain statements in this release that are not historical facts,
including, without limitation, those relating to our anticipated
financial performance, are forward-looking statements that involve risks
and uncertainties. Such statements are based upon the current beliefs
and expectations of the management of the Company. Actual results may
vary materially from those contained in forward-looking statements based
on a number of factors including, without limitation, the actual number
of restaurants opening; the sales at these and our other company and
franchise restaurants; changes in restaurant development or operating
costs, such as food and labor; our ability to acquire franchise
restaurants; our ability to integrate the franchise restaurants we
acquire or other concepts we develop; our ability to continue to
generate the necessary cash flows to fund our new restaurant growth,
continue our share repurchase program and pay a quarterly cash dividend;
strength of consumer spending; pending or future legal claims; breaches
of security; conditions beyond our control such as weather, natural
disasters, disease outbreaks, epidemics or pandemics impacting our
customers or food supplies; food safety and food-borne illness concerns;
acts of war or terrorism and other factors disclosed from time to time
in our filings with the U.S. Securities and Exchange Commission.
Investors should take such risks into account when making investment
decisions. Shareholders and other readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as
of the date on which they are made. We undertake no obligation to update
any forward-looking statements.

Net income per common share attributable to Texas Roadhouse, Inc.
and subsidiaries:

Basic

$

0.48

$

0.30

$

0.98

$

0.76

Diluted

$

0.47

$

0.30

$

0.98

$

0.76

Weighted average shares outstanding:

Basic

70,368

70,026

70,269

69,933

Diluted

70,876

70,648

70,840

70,588

Cash dividends declared per share

$

0.19

$

0.17

$

0.38

$

0.34

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

June 28, 2016

December 29, 2015

Cash and cash equivalents

$

95,305

$

59,334

Other current assets

50,655

74,479

Property and equipment, net

778,634

751,288

Goodwill

116,571

116,571

Intangible assets, net

4,150

4,827

Other assets

27,886

26,207

Total assets

$

1,073,201

$

1,032,706

Current maturities of long-term debt

151

144

Other current liabilities

218,725

256,498

Long-term debt, excluding current maturities

50,472

25,550

Other liabilities

78,731

73,332

Texas Roadhouse, Inc. and subsidiaries stockholders' equity

717,425

669,662

Noncontrolling interests

7,697

7,520

Total liabilities and equity

$

1,073,201

$

1,032,706

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

26 Weeks Ended

June 28, 2016

June 30, 2015

Cash flows from operating activities:

Net income including noncontrolling interests

$

71,862

$

55,847

Adjustments to reconcile net income to net cash provided by
operating activities

Depreciation and amortization

39,777

33,151

Share-based compensation expense

11,703

10,215

Other noncash adjustments

(493

)

(2,992

)

Change in working capital

(8,781

)

(1,398

)

Net cash provided by operating activities

114,068

94,823

Cash flows from investing activities:

Capital expenditures - property and equipment

(69,159

)

(70,933

)

Proceeds from sale of property and equipment, including insurance
proceeds

-

9

Net cash used in investing activities

(69,159

)

(70,924

)

Cash flows from financing activities:

Proceeds from revolving credit facility

25,000

-

Repurchase shares of common stock

(4,110

)

(3,138

)

Dividends paid

(25,277

)

(34,247

)

Other financing activities

(4,551

)

(1,671

)

Net cash used in financing activities

(8,938

)

(39,056

)

Net increase (decrease) in cash and cash equivalents

35,971

(15,157

)

Cash and cash equivalents - beginning of period

59,334

86,122

Cash and cash equivalents - end of period

$

95,305

$

70,965

Texas Roadhouse, Inc. and Subsidiaries

Supplemental Financial and Operating Information

($ amounts in thousands, except weekly sales by group)

(unaudited)

Second Quarter

Change

Year to Date

Change

2016

2015

vs LY

2016

2015

vs LY

Restaurant openings

Company - Texas Roadhouse

6

6

0

11

8

3

Company - Bubba's 33

1

2

(1

)

3

3

0

Company - Other

0

1

(1

)

0

1

(1

)

Franchise - Texas Roadhouse

1

1

0

2

1

1

Total

8

10

(2

)

16

13

3

Restaurants open at the end of the quarter

Company - Texas Roadhouse

403

376

27

Company - Bubba's 33

10

6

4

Company - Other

2

2

0

Franchise - Texas Roadhouse

84

80

4

Total

499

464

35

Company-owned restaurants

Restaurant sales

$

504,630

$

450,692

12.0

%

$

1,015,914

$

906,985

12.0

%

Store weeks

5,350

4,934

8.4

%

10,612

9,790

8.4

%

Comparable restaurant sales growth (1)

4.5

%

8.2

%

4.5

%

8.5

%

Texas Roadhouse restaurants only:

Comparable restaurant sales growth (1)

4.5

%

8.2

%

4.5

%

8.5

%

Average unit volume (2)

$

1,232

$

1,188

3.7

%

$

2,505

$

2,409

4.0

%

Weekly sales by group:

Comparable restaurants (361 units)

$

95,434

Average unit volume restaurants (24 units) (3)

$

84,272

Restaurants less than 6 months old (18 units)

$

98,319

Restaurant operating costs (as a % of restaurant sales)

Cost of sales

34.0

%

37.3

%

(330

)

bps

33.9

%

36.2

%

(224

)

bps

Labor

29.7

%

29.3

%

42

bps

29.3

%

29.1

%

24

bps

Rent

2.0

%

2.0

%

(1

)

bps

2.0

%

2.0

%

(1

)

bps

Other operating

15.0

%

15.2

%

(13

)

bps

15.1

%

15.2

%

(7

)

bps

Total

80.8

%

83.8

%

(302

)

bps

80.3

%

82.4

%

(208

)

bps

Restaurant margin (4)

19.2

%

16.2

%

302

bps

19.7

%

17.6

%

208

bps

Restaurant margin ($ in thousands)

$

96,994

$

73,035

32.8

%

$

199,965

$

159,648

25.3

%

Restaurant margin $/Store week

$

18,130

$

14,804

22.5

%

$

18,843

$

16,307

15.6

%

Franchise-owned restaurants

Franchise royalties and fees

$

4,178

$

4,006

4.3

%

$

8,453

$

7,943

6.4

%

Store weeks

1,088

1,032

5.4

%

2,157

2,059

4.8

%

Comparable restaurant sales growth (1)

2.6

%

6.9

%

2.8

%

7.5

%

Average unit volume (2)

$

1,273

$

1,274

(0.1

)

%

$

2,590

$

2,580

0.4

%

Pre-opening expense

$

4,411

$

4,909

(10.1

)

%

$

9,236

$

8,727

5.8

%

Depreciation and amortization

$

20,238

$

16,816

20.3

%

$

39,777

$

33,151

20.0

%

As a % of revenue

4.0

%

3.7

%

28

bps

3.9

%

3.6

%

26

bps

General and administrative expenses

$

26,711

$

23,620

13.1

%

$

56,771

$

45,417

25.0

%

As a % of revenue

5.2

%

5.2

%

6

bps

5.5

%

5.0

%

58

bps

(1) Comparable restaurant sales growth reflects the change in
year-over-year sales for restaurants open a full 18 months before
the beginning of the period measured, excluding sales from
restaurants closed during the period.

(2) Average unit volume includes sales from Texas Roadhouse
restaurants open for a full six months before the beginning of the
period measured, excluding any sales at restaurants closed during
the period.

(3) Average unit volume restaurants include restaurants open a full
six to 18 months before the beginning of the period measured.

(4) Restaurant margin represents restaurant sales less restaurant
operating costs, including cost of sales, labor, rent and other
operating costs (as a percentage of restaurant sales). Depreciation
and amortization expense, substantially all of which relates to
restaurant-level asset, is excluded from restaurant operating costs.
Restaurant margin is widely regarded in the restaurant industry as a
useful metric by which to evaluate restaurant-level operating
efficiency and performance. Restaurant margin is not a measurement
determined in accordance with GAAP and should not be considered in
isolation, or as an alternative, to income from operations or other
similarly titled measures of other companies.